Crude oil drops, as new king Salman Bin Abdulaziz maintains policies of his predecessor

Oil dropped to the lowest level in almost six years on Monday as signs that Saudi Arabia’s new king will maintain the oil policy of his predecessor and rising U.S. crude stockpiles bolstered speculation that a global glut will linger.

In New York futures dropped as much as 2.7 percent in New York, extending a 6.4 percent slide last week.

West Texas Intermediate for March delivery decreased as much as $1.24 to $44.35 a barrel in electronic trading on the New York Mercantile Exchange and was at $44.76 at 3:45 p.m. Singapore time. The contract lost 72 cents to $45.59 on Jan. 23, the lowest close since March 2009. The volume of all futures traded was almost double the 100-day average.

Brent for March settlement slid as much as 94 cents, or 1.9 percent, to $47.85 a barrel on the London-based ICE Futures Europe exchange. It gained 27 cents to $48.79 on Jan. 23. The European benchmark crude traded at a premium of $3.19 to WTI, as Bloomberg reported.

In a speech on Saudi national television, King Salman Bin Abdulaziz, who took over after the death of King Abdullah on Jan. 23, pledged to maintain the policies of his predecessor. U.S. inventories climbed to 383.5 million barrels last month, the highest level for December since 1930, the American Petroleum Institute reported.

Oil plunged almost 50 percent last year on OPEC, US shale revolution, and also as Saudi Arabia, the world’s biggest exporter, has chosen not to reduce supply and count instead on lower prices to stimulate demand, according to Mohammad Al Sabban, an adviser to the kingdom’s petroleum minister from 1988 to 2013.

Although smaller members including Venezuela called for action to spur prices, Oil Minister Ali Al-Naimi highlighted the need to preserve market share.

According to the official Saudi Press Agency, Al-Naimi, who has driven decision-making since 1995, was retained by King Salman along with current Saudi ministers.

Oil also extended losses as the euro briefly traded at an 11-year low against the dollar after the anti-austerity Syriza party won in Greek elections over the weekend. A stronger U.S. currency typically damps the investment appeal of commodities.